Philippine auto-part makers ready to meet local car assemblers' demand

Amid expected Japan supply shortage
Mar 31, 2011

Car parts (Photo from Motor Vehicle Parts Manufacturers Association of the Philippines Inc. (MVPMAP) said its members are ready to supply automotive components to local assemblers amid supply concerns following the disasters that hit Japan.

"Parts makers are running below capacity right now. They can do the parts immediately if given the chance," Antonio Gimenez, MVPMAP executive director.

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Local assemblers mostly import parts and components from ASEAN countries to enjoy the zero-tariff regime but some supplies still come from Japan.

Sourcing from local auto-part makers has been generally minimal and assemblers the availability of components from domestic suppliers is limited. The Department of Trade and Industry, however, are encouraging carmakers to tap Philippine sources as supply from Japan is expected to dip.

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"We gave car companies an option: Source spare parts here. Filipino parts manufacturers can be a stopgap," said DTI undersecretary and Board of Investments managing head Cristino Panlilio.

Among local assemblers, Ford Group Philippines gets around 35 percent of its auto parts requirements in the domestic market, Toyota Motor Philippines about 20 percent and Honda Cars Philippines roughly 10 percent.

Photo by Jeinny via

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